Mthough we do not believe that travel regulations require DOD to revise its PCS lodging policy, the department does have the discretion to make the proposed change to bring consistency to the program and to reach desired management objectives. Mthough the proposed policy change would not impact the other services' overall MWR programs, it would impact the Marine Corps' MWR program. However, the Marine Corps has several options to help it compensate for potential lost MWR revenue and to preserve a financially healthy lodging operation. For this reason, if the proposed policy is adopted and the Marine Corps requests a wavier, we would support a short-term wavier to permit the Marine Corps time to evaluate implementation options. However, we do not believe that a permanent wavier is necessary, considering the reported amount of lodging earnings involved. While the Navy already separates accounting of its lodging fund from its MWR fund, it does not currently plan to create a consolidated lodging fund for both PCS and TDY lodges as seems to be suggested by OSD's May 2, 2001, report to the Congress. Clarification of the intent of the policy guidance in this area is needed. In addition, the Army's practice of charging unofficial travelers a nightly surcharge that it provides to the local installation's MWR fund violates DOD and Army regulations.

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